Bridging application values rise 123% as brokers shop around

by: Heather Greig-Smith

Bridging applications are up 123% on last year, according to the latest quarterly figures from the Association of Short Term Lenders (ASTL).

In the first quarter of 2017, ASTL members saw the value of applications for bridging loans increase by 13.9%, compared with the previous quarter.

Values were 123% higher than the same quarter in 2016. However, the amount of loans actually written is 11.4% higher than Q1 2016 – as the figures reflect brokers shopping around.

The size of the overall loan book was up 45% on March 2016, although it was down 5.7% at the end of Q1 this year, compared to the end of the previous quarter.

ASTL chief executive Benson Hersch (pictured) said the figures show renewed confidence among buyers. “Despite recent uncertainties, including Brexit and the triggering of Article 50, applications are on the rise, suggesting that there is a renewed confidence among investors and homebuyers alike.

“However, there is still a clear disparity between applications and completions, reflecting increased competition as brokers shop around. Of course, not all applications reach completion for various reasons and the recently reported increased completion times are also having an effect.”

Annual lending in the bridging sector still falls short of what Hersch termed “the elusive £3bn figure”. Despite this, and the upcoming general election, he added that members are “increasingly positive about the outlook for 2017”.

You may also be interested in

Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.

Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Specialist Lending Solutions Newsletter Sign up form

For just two minutes of your time, you can register for premium access

Access to exclusive content

Priority event notifications

Business information tailored specifically to your business needs

Engage in interactive commenting

Mortgage Solutions Newsletter

You may also be interested in the Mortgage Solutions newsletter. All the latest news, analysis and insight from the mainstream residential lending market. Including industry news, adviser business strategy tips and market commentary.

Email address

First name

Surname

Postcode

LOGIN

please sign-in using your email and password

Success....

Please enter your email address and we will email you a link where you can change your password.

Premium access

Register to gain access to MortgageSolutions.co.uk for the latest news analysis, interactive comment, industry video and features, all at your finger tips. Vote in our polls, get your opinion across on the news and watch out for our weekly editorial round-up features.

Delegate places are free of charge, subject to approval by the organisers based on job criteria

Registered delegates have access to the seminars where applicable. You will be given an identification badge, which must be shown upon request.

Once you have registered and your application has been accepted, then you are expected to attend. If you are subsequently unable to attend, please make sure your notice of cancellation is sent at least three weeks prior to the date of the event.

All cancellations must be received in writing. You will receive confirmation of your cancellation. Suitably qualified replacements may be sent if you are unable to attend; however, the organisers must approve them before the event takes place.

Should you be unable to attend, a substitute delegate is always welcome, subject to confirmation by the organisers and on receipt of the change in writing.

AE3 Media reserves the right to change the programme, speakers, dates or venue at any time, without notice. Should for any reason the venue or speakers change, or the event be cancelled due to an act of terrorism, extreme weather, disease control, industrial action, act of God or any eventuality beyond the control of AE3 Media, we shall endeavour to reschedule; but the client hereby indemnifies AE3 Media and holds AE3 Media harmless from and against any and all costs, damages and expenses, including legal fees, incurred by the client.

AE3 Media will not be liable for damage, loss, injury, accident, annoyance, delay or irregularity, which occurs by reason of any act or default committed by any person or company.

UK law shall apply to any claim against AE3 Media and all proceedings shall be within the exclusive domain of the UK Courts.

The signature of the delegate/visitor or his/her duly authorised agent on the registration form shall signify the delegate/visitor's acceptance of the above conditions and the same shall bind both parties to this contract.